1. Field of the Invention
The present invention relates to computer-based analysis and simulation. More particularly, the invention concerns a computer-driven system for simulating and optimizing the financial aspects of a plan to implement distributed capture technology.
2. Description of the Related Art
In 2004, Congress enacted a law called the “Check Clearing for the Twenty-First Century Act.” People call it “Check21,” for short. With the goal of reducing waste and delay in check processing, Check21 enabled banks to handle checks electronically. Instead of transporting paper checks from one institution to another, Check21 allows banks to process checks electronically. Banks capture an image of the front and back of the check along with the associated payment information and transmit this electronically. The use of images, instead of paper checks, is referred to as “image exchange.” If someone along the line requires a paper check, the bank can use the electronic image to create a paper proxy called an image replacement document (IRD).
After Check21 came into effect, the first banks to implement image exchange did so by adopting a centralized processing model. With centralized processing, a bank routes paper checks from the bank's various branches or other deposit accepting locations (cash vaults, lockbox operations, etc.) to a central facility, and captures/scans them there. This minimizes the overhead required to start using image exchange, since it processes the checks using a central staff and central computer hardware. Of course, various computers outside this central facility must still be reprogrammed to communicate according to the new requirements of image exchange. For instance, computers must be programmed to retrieve images of checks to satisfy customer inquiries, prepare statements, conduct research, and the like. Further, central computers of the bank must be programmed to electronically transmit the check images to other banks, which is really the main idea in performing image exchange in the first place.
Outside the realm of Check21, it has been a logical extension for banks to scan and digitally process documents beyond checks, such as deposit slips, withdrawal slips, and other such documents. The next extension of image exchange, for some banks, is referred to as “distributed capture.” With distributed capture, these same documents are digitized earlier relative to the point of presentment. For instance, local bank branches may perform on-site digitization, instead of forwarding the paper checks to a central processing facility.
A number of software products are aimed at the task of implementing direct capture at banking branches and automated teller machines (ATMs). The present inventors have recognized, however, that implementing direct capture is not as simple and seamless as merely purchasing hardware and software. Indeed, the inventors have recognized that distributed capture technology incurs various costs, and has a complicated relationship with other existing costs. In some circumstances, implementing distributed capture could even be more costly than the status quo. Although on the surface it appears to be simple, there are thousands of variables and considerations, making for tremendous complexity in planning a schedule for implementing distributed capture across a financial network with many deposit accepting locations.
One novel approach to the problem, taken by the present inventors, was to utilize a simulator to help determine prioritization for implementing distributed capture. Indeed, there are many different types of known simulators, such as flight, military, biological, city, weather, medicine, and robotics simulators, to name a few. However, there is no computer model to simulate the financial consequences, over time, of implementing distributed capture technology in a banking institution. Moreover, there is no tool for analyzing or optimizing this plan. Consequently, the state of the art is inadequate for banking institutions facing the daunting process of evaluating and/or prioritizing the implementation of distribute capture technology.